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Note 21 - Discontinued Operations
 6 Months Ended
Jun. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 21:  DISCONTINUED OPERATIONS


On April 26, 2013, Eastman Kodak Company, the Trustee, Kodak Limited and certain other Kodak entities entered into a global settlement agreement that resolves all liabilities of the Kodak group with respect to the KPP (the “Global Settlement”).  The Global Settlement provides for the acquisition by the KPP of certain assets, and the assumption by the KPP of certain liabilities, of Kodak’s Personalized Imaging and Document Imaging businesses.  The consummation of the Global Settlement is contingent upon the substantial consummation of the Debtors’ POR or the provision by Kodak of adequate assurances of performance under the Agreement in a form reasonably acceptable to the Trustee.  The sale is expected to close in the third quarter of 2013.


Discontinued operations of Kodak include the Personalized Imaging and Document Imaging businesses (excluding the Consumer Film business, for which Kodak will enter into an ongoing supply arrangement with the KPP), digital capture and devices business (exited in the third quarter of 2012), Kodak Gallery (exited in the third quarter of 2012), and other miscellaneous businesses.


The significant components of revenues and loss from discontinued operations, net of income taxes, are as follows:


   

Three Months Ended June 30,

   

Six Months Ended June 30,

 

(in millions)

 

2013

   

2012

   

2013

   

2012

 
                                 

Revenues from Personalized Imaging and Document Imaging operations

  $ 289     $ 340     $ 537     $ 639  

Revenues from Digital Capture and Devices operations

    2       15       5       33  

Revenues from Kodak Gallery operations

    -       13       -       27  

Revenues from other discontinued operations

    8       11       15       24  

Total revenues from discontinued operations

  $ 299     $ 379     $ 557     $ 723  
                                 

Pre-tax (loss) income from Personalized Imaging and Document Imaging operations

  $ (19

)

  $ 18     $ (48

)

  $ 9  

Pre-tax income (loss) from Digital Capture and Devices operations

    3       (21

)

    2       (72

)

Pre-tax income from Kodak Gallery operations

    -       9       -       3  

Pre-tax loss from other discontinued operations

    (2

)

    -       (17

)

    (4

)

(Benefit) provision for income taxes related to discontinued operations

    (2

)

    8       (6

)

    6  

Loss from discontinued operations, net of income taxes

  $ (16

)

  $ (2

)

  $ (57

)

  $ (70

)


Interest expense on debt that is required to be repaid as a result of the sale of the Personalized Imaging and Document Imaging businesses has been allocated to discontinued operations ($5 million and $10 million for the three and six months ended June 30, 2013, respectively, and $5 million and $9 million for the three and six months ended June 30, 2012, respectively).


Depreciation and amortization of long-lived assets of the Personalized Imaging and Document Imaging businesses included in discontinued operations ceased as of July 1, 2013.


Direct operating expenses of the discontinued operations are included in the results of discontinued operations.  Indirect expenses that were historically allocated to the discontinued operations have been included in the results of continuing operations.  Prior period results have been reclassified to conform to the current period presentation.


The following table summarizes the major classes of assets and liabilities related to the disposition of the Personalized Imaging and Document Imaging businesses which have been segregated and included in assets held for sale and liabilities held for sale in the Consolidated Statement of Financial Position:


(in millions)

 

As of

June 30,

2013

   

As of

December 31,

2012

 
                 

Receivables, net

  $ 142     $ 158  

Inventories, net

    126       123  

Property, plant and equipment, net

    75       86  

Goodwill

    140       146  

Other assets

    44       43  

Current assets held for sale

  $ 527     $ 556  
                 

Trade payables

  $ 55     $ 77  

Miscellaneous payables and accruals

    147       137  

Pension liabilities

    1,423       1,525  

Other liabilities

    17       12  

Liabilities subject to compromise

    8       8  

Current liabilities held for sale

  $ 1,650     $ 1,759